Trade Balance is the difference between the total value of exports and the total value of imports. This indicator is a part of the Current Account. A positive trade balance shows the demand of goods of the country on the international market, as well as the fact that the country does not consume all that it produces. A negative trade balance suggests that the country consumes foreign goods together with it own goods.
When the U.S. trade deficit decreases due to increase of exports, the demand of U.S. dollars increases which stimulates the growth of the American currency.